Life Insurance

Life Insurance

A good rule of thumb is to aim for a policy that will cover 2-6 times your annual income. If your yearly income is $50,000, then a policy from $100,000 – $300,000 should be sufficient. Again, it depends on your personal situation. Take into consideration the rate of inflation, potential college tuition costs, or large loans and home mortgages. If you have two children who plan on attending college, current tuition prices range anywhere from $10,000 – $30,000 per year, with the high end range focusing on private universities. Expect that range to increase anywhere from 5-10% within the next 5 years.